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Working Capital Strategies

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McDonald's Corporation: Working Capital Strategies Analysis

Current Working Capital Policy

For the year ended December 31, 2009, McDonald's Corporation's working capital, which is the difference between the company's current assets and liabilities, is 427.60 million US dollars which represents a decrease of more than 550 million US dollars from the 2008 level (McDonald's Corporation, 2010, p. 29). Analysis of the different components of working capital, mainly cash and equivalents, accounts and note4s receivables, inventories, prepaid expenses, accounts payable, income and other taxes, accrued payroll and other liabilities, and current portion of long term debt, shows that the decrease came from the decrease in cash and cash equivalents and the increase in income taxes and accrued payroll and other liabilities.

The decrease in the company's cash and cash equivalents, based on the analysis of the ...

Solution Summary

Working capital strategies are examined for explicit specifications.